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Rebate vs. 0% Financing - Which is Right For You?

Before jumping at either choice, you need to ask yourself how long you intend to keep your vehicle. First Reliance Bank’s low vehicle rates, combined with the rebate may be the best choice. If you're like most people, you trade in your vehicle before the term of the loan is up. A rebate of up to $3,000 is all up front and you receive the full savings benefit immediately. With the 0% financing, it takes years before you realize the full savings. The following example is based on trading your vehicle in after 3 years:

Dealer Financing First Reliance Bank Loan
Loan Rate 0% APR 2.99%* APR
Term of Loan 48 mos. 48 mos.
Vehicle Price $23,000.00 $23,000.00
Down Payment/Trade In $2,500.00 $2,500.00
Negotiated Discount/Rebate - $3,000.00
Amount of Loan $20,500.00 $17,500.00
Monthly Payment $427.00 $387.00
Total Amount Paid at 36 mos. $15,372.00 $13,942.00
Remaining on Loan Balance $5,128.00 $4,573.
  At 36 months, the First Reliance Bank loan will have saved you $1,430 and the remaining loan balance on the First Reliance Bank loan is $555 less than the dealer's 0% APR loan. Another benefit of taking the rebate is the immediate effect of creating a stronger equity position in the vehicle. This gives you more flexibility when trading early because you will owe significantly less on your current loan. When offered a 0% APR, always do the comparison.

Rebate + First Reliance Bank's Low Rate = One Smart Deal

Take the Rebate and Finance Through First Reliance Bank! For help in evaluating your financing options, call our Customer Care Center at 888.543.5510 and ask to speak to a Personal Banker in your local branch.
* Rate as of May 1, 2012. All rates, terms and conditions are subject to change. APR = Annual Percentage Rate and is based on your credit quality, and term. For any loan NOT ON AUTOMATIC TRANSFER from an existing First Reliance Bank account OR IS NOT A PRIMARY CUSTOMER WITH A CHECKING ACCOUNT, three quarter of one percent (.75%), will be added to the approval rate. For example, the above quoted APR is based on 48 monthly payments of $387, with $17,500 borrowed. Your rate may be different. Our usual credit criteria apply. Qualified borrowers only. Savings shown is for a new vehicle loan with a term of 48 months. The information on this page is for educational purposes only. First Reliance Bank is not engaged in providing estate planning or other advice. Please consult with a competent estate planning professional regarding any specific estate planning questions.


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